By Stella Goh

Petronas Chemicals Group Berhad (PetChem) and LG Chem have inked an agreement to build a nitrile butadiene latex (NBL) manufacturing plant at Pengerang Integrated Complex (PIC) in Johor as they venture into the rubber glove industry. NBL is a synthetic rubber that uses butadiene as the main feedstock and is a core raw material for making nitrile gloves, which is widely used in industries such as healthcare, medical, and food. This facility will further help strengthen Malaysia’s position as the largest exporter of rubber gloves globally.

The construction of the plant will begin in 2021 while production is scheduled to start in 2023.The plant will have an annual NBL production capacity of 200,000 tibs after completed. PETCHEM and LC Chem will work together to offer various grades and new applications of NBL as well as develop high value-added products through continuous research & development and investments.

According to the PETCHEM Managing Director and Chief Executive Officer Datuk Sazali, this collaboration further strengthens the pursuit of the growth agenda, having acquired a silicone player last year. With more specialty chemicals in portfolio, they are moving into segments with higher growth potential. The collaboration also will help to create new revenue streams and unlock new markets by optimising resources in both companies.

Recently, the use of nitrile gloves has seen rapid growth in helping to prevent the spread of Covid-19 and other infections. The rising of demand of nitrile gloves is at an annual average of more than 10% and is expected to account for 70% of the entire latex gloves market in 2024.

Join us now in stockpick2u and we will share our views on the company and details of shareholders’ meeting.

-------------------------------------------------------------

Stockpick2u
https://www.stockpick2u.com/plans-pricing
 

Please contact us：
012-6644 828

WhatsApp link:
https://bit.ly/33pEKcS

Website: www.stockpick2u.com

Facebook: https://www.facebook.com/stockpick2u/?ref=bookmarks

Services: General Meeting Information, Company Fundamentals Sharing

Disclaimer:

The above data are purely based on personal views. The content above does not contain any trading advice, and only can be used as learning and information purposes. Please analyze by yourself, understand the risks, and discuss the nature of investment with professional financial advisors.

Stockpick2u is not responsible for any accuracy, completeness, correctness, validity of any shared content and opinion. All misunderstandings, errors, omissions, delays in information are not responsible for any loss incurred.